Sole Trader

A sole trader is an individual who sets up in business on their own. It is the simplest type of business to run, as the individual makes all of the decisions themselves. The disadvantage of operating as a sole trader is the fact that liability is unlimited, which means that the owner is liable for all of the debts of the company. This means that creditors can pursue the owner for his or her personal assets, including the family home, if the business is not able to pay its debts.

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